SECURITIES AND EXCHANGE COMMISSION

                            WASHINGTON, D.C.  20549

                                   FORM 10-K

                 Annual Report Pursuant to Section 13 or 15(d)
                    of the Securities Exchange Act of 1934

                   For the Fiscal Year Ended:  June 30, 2001

                       Commission File Number:  2-73692

                      The Balanced Opportunity Fund L. P.
            (Exact name of registrant as specified in its charter)

Illinois                                                    36-3655854
(State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                             Identification No.)

c/o Rosenthal Collins Futures Management, Inc.
216 W. Jackson Blvd. Suite 300
Chicago, IL  60606
(Address of principal executive offices)

Registrant's telephone number, including area code:  (312) 460-9200

Indicate by check mark whether the registrant (1) filed all reports required to
be file by Section 13 or  15 (d) of the Securities Exchange Act of 1934  during
the preceding 12  months (or for  such shorter period  that the registrant  was
required to  file  such reports),  and  (2) has  been  subject to  such  filing
requirements for the past 90 days.


               Yes  X                   No
                 ---                       ---
The registrant is a limited  partnership and, accordingly, has no voting  stock
held by non-affiliates or otherwise.

The prospectus included in the partnership's registration statement, Form S-18,
No. 2-73692 is incorporated by reference into Part IV of this Form 10-K.






Page 1 of 6 pages

An Index to Exhibits required by Item 14 is found at page 6
<page>





PART I

ITEM 1.  Business

     (a)  General Development of Business

     The Balanced Opportunity Fund, L.P. (the "Partnership") is a limited
partnership organized in July, 1989, pursuant to a Limited Partnership
Agreement and under the Uniform Limited Partnership Act of the State of
Illinois and funded through an offering of limited partnership units.  The
Partnership commenced trading on March 23, 1990.  The Partnership conducts
speculative trading of commodity interests.

     Upon commencement of trading, approximately eighty percent of the
Partnership's assets was invested in zero coupon United States Government
Treasury securities ("notes") so as to yield (I) $1,000  per unit, plus (II) a
five percent compound annual  yield approximately six and one-half years after
the commencement of trading (the "Guaranteed Yield Pool").  Persons who redeem
units prior to the approximate six and one-half year period have no such
assured return.  The Guaranteed Yield Pool zero coupon note matured in February
1998 and in accordance with the Fund's limited partnership agreement a special
redemption at the Fund's net asset value was offered to investors on February
28, 1998.  A new zero coupon was purchased after the special redemption offer
expired.  As of June 30, 2001 and 2000, the maturity value of the notes
amounted to $1,350,000 and $1,800,000 respectively.   The remainders of the
Partnership's assets were invested in  speculative trading of commodity
interests.

     The Balance Opportunity Fund Limited Partnership will terminate on
December 31, 2009.

     Rosenthal Collins Futures Management, Inc., an Delaware corporation wholly
owned by Rosenthal Collins Group L.P., is the General Partner of the
Partnership.  In May of 1998 Rosenthal Collins Group, an Illinois Limited
Partnership, ("the broker"), was enlisted to act as the commodity clearing firm
for the Partnership and it performs various administrative services for the
fund.  Services performed for the Partnership by the commodity broker or the
General Partner under the terms of the Customer and the Limited Partnership
Agreements, include the following:


     1.  Executes all trades on behalf of the Partnership based on instructions
of the Partnership's Trading Manager.

     2.   Maintains the Partnership books and records, which limited partners
or their duly authorized representatives, may inspect during normal business
hours for any proper purpose upon reasonable written notice to the General
Partner.

     3.  Furnishes each limited partner with a monthly statement describing the
performance of the Partnership, which sets forth aggregate management fees,
incentive fees, brokerage commissions and other expenses incurred or accrued by
the Partnership during the month.

     4.  Forwards annual certified financial statements (including a balance
sheet and a statement of income and expenses) to each limited partner.
<page>




     5.  Provides to each limited partner tax information necessary for the
preparation of his annual federal income tax return and such other information
as the CFTC may by regulation require.

     6.  Performs secretarial and other clerical responsibilities and furnishes
office space, equipment and supplies as may be necessary for supervising the
affairs of the Partnership.

     7.  Administers the redemption of Units.

     Under the terms of the Customer Agreement, the Partnership pays brokerage
commissions to the commodity broker of $50 per round turn per contract for
futures contracts.

     The Partnership pays Rosenthal Collins Group, L.P., an annual brokerage
fee equal to an annual rate of four percent of the average month-end net assets
as a whole, as defined, during the year.

     RXR serves as the Trading Manager and is responsible for selecting all
commodity transactions.  RXR is not affiliated with Rosenthal Collins Futures
Management or with Rosenthal Collins Group.  For their services, RXR receives a
consulting fee equal to an annual one percent of the month end net assets,
before commissions and charges, of the Fund as a whole.  The Fund pays a
quarterly incentive fee based on new appreciation on Partnership assets
attributable to the Trading Manager, which includes the Partnership's interest
income.  Such quarterly incentive fee will equal 15% of trading profits.  If
the fund should incur net losses subsequent to any such payment to the Trading
Manager, the Trading Manager shall be entitled to retain amounts previously
paid by the Fund; However, no subsequent fee will be paid until the Trading
Manager's allocation of equity has experienced new appreciation.

Regulation

     Under the Commodity Exchange Act, as amended (the "Act"), commodity
exchanges and futures and options trading are subject to regulation by the
Commodity Futures Trading Commission (the "CFTC").  The Act requires "Commodity
Pool Operators," such as the General Partner and "Commodity Trading Advisors,"
such as the Trading Managers, to be registered and to comply with various
reporting and record keeping requirements.  The CFTC may suspend a Commodity
Pool Operator's or Trading Advisor's registration if it finds that its trading
practices tend to disrupt orderly market conditions or in certain other
situations.

     In the event that the registration of the General Partner as a Commodity
Pool Operator or any Trading Manager's registration as a Commodity Trading
Advisor were terminated or suspended, the General Partner and the Trading
Manager, respectively, would be unable to continue to manage the business of
the Partnership.  Should the General Partners' registration be suspended,
termination of the Partnership might result.  The Act also requires the
commodity Broker to be registered as a "Futures Commission Merchant."
<page>




     In addition to such registration requirements, the CFTC and certain
commodity exchanges have established limits on the maximum net long or net
short position which any person may hold or control in particular commodities.
 The CFTC has adopted a rule requiring all domestic commodity exchanges to
submit for approval speculative position limits for all futures contracts
traded on such exchanges.  Most exchanges also limit the changes in commodity
futures contract prices that may occur during a single trading day.

     The partnership may trade on foreign commodity exchanges, which are not
subject to regulation by any United States government agency.

     (b) Financial Information about Industry Segments

     The Partnership operates in one business segment, speculative trading of
commodity futures and related contracts.  The Partnership does not engage in
sales of goods or services.

     (c) Narrative Description of Business

     See Items 1 (a) and (b) above.
     (i) through (xii) - not applicable
     (xiii) - the Partnership has no employees

     (d) Financial information about foreign and domestic operations and export
sales

     The Partnership does not engage in sales of goods or services.  See
Paragraph 1(b) Financial information about industry segments.



PART II

Item 2.  Properties

     The Partnership does not own any properties.

Item 3.  Legal Proceedings

     The General Partner is not aware of any pending legal proceedings to which
the Partnership or the General Partner is a party.

Item 4.  Submission of Matters to a Vote of Security Holders.

     None.

<page>
Item 5.  Market for Registrant's Common Equity and Related Stockholders Matters

     (a) Market Information

     There is no trading market for the Units, and none is likely to develop.
Units are transferable only after written notice has been given to the General
Partner.

     Units may be redeemed upon ten days notice at their Net Asset Value (as
defined in the Limited Partnership Agreement) as of the end of any calendar




quarter, less any early redemption penalty as provided in the Limited
Partnership Agreement.

     (b) Holders

     As of June 30, 2001, there were 88 holders of the Limited Partner Units.
721 units were outstanding on this date, including 111 units of General
Partnership interest.

     (c)  Dividends

     There were no dividends or distributions made in respect of the Units and
any future distributions will only be made at the discretion of the General
Partner.

Item 6.  Selected Financial Data

     The following page contains a summary of selected consolidated financial
data for the Partnership for the fiscal years ended June 30, 2001, 2000, 1999,
1998, and 1997.
<page>




<table>
     The Balanced Opportunity Fund Limited Partnership
      Selected Financial Data

                        <c>        <c>        <c>        <c>        <c>
                            June 30    June 30    June 30    June 30    June 30
                            2001       2000       1999       1998       1997
 Income:                   ---------  ---------   ---------  ---------  ---------

 Trading gain (loss)
   Realized                 $101,000   $(60,000)  $ 118,000  $440,000   $ 335,000
   Changes in unrealized    (42,000)     21,000       8,000  (102,000)    100,000
   Foreign currency
    gain (loss)              (4,000)     (3,000)      1,000    (4,000)
                           ---------  ---------   ---------  ---------  ---------
    Gain (loss) from
    trading                 $55,000   $(42,000)   $ 127,000  $ 334,000  $ 435,000

 Guaranteed Yield Pool:
   Interest income            89,000     34,000      73,000    166,000    534,000
   Unrealized Market Value
    gain (loss)               19,000     59,000     (3,000)    139,000     54,000
   Realized gain (loss)        5,000     11,000      54,000     19,000  (322,000)
     Total guaranteed
                           ---------  ---------   ---------  ---------  ---------
      yield pool revenue    $113,000   $104,000   $ 124,000  $ 324,000  $ 266,000

 Interest Income              10,000     17,000      23,000     34,000     45,000
                           ---------  ---------   ---------  ---------  ---------
     Total Income          $178,000    $ 79,000   $ 274,000  $ 692,000  $ 746,000

 Expenses:
   Brokerage commissions
    and fees                 65,000      86,000     115,000    135,000    205,000
   Consulting fees           16,000      20,000      28,000     30,000     49,000
   Administrative expenses   72,000      61,000      78,000     96,000     54,000
                           ---------  ---------   ---------  ---------  ---------
     Total Expenses        $153,000    $167,000   $ 221,000  $ 261,000  $ 308,000

 Net Income (Loss)         $ 25,000    $(88,000)  $  53,000  $ 431,000  $ 438,000

 Total Assets              $1,411,000 $1,871,000 $2,572,000 $2,934,000 $3,605,000
                           ========== ========== ========== ========== ==========
 Total Liabilities          $ 26,000    $ 98,000  $ 310,000  $140,000   $ 44,000

 Partners' Capital
   Limited Partners
     Units                   610.0000   823.0000 1,032.0000 1,432.9963 1,967.4520
     Value                 $1,172,000 $1,562,000 $2,042,000 $2,578,000 $3,371,000

   General Partner
    (111 Units)               213,000    211,000    220,000    216,000    190,000
                           ---------  ---------   ---------  ---------  ---------
 Total Partners' Capital   $1,385,000 $1,773,000 $2,262,000 $2,794,000 $3,561,000

 Total Liabilities &
  Partners' Capital        $1,411,000 $1,871,000 $2,572,000 $2,934,000 $3,605,000
                           ========== ========== ========== ========== ==========
 Net Asset Value per Unit
  Limited Partners          $1,921.31  $1,897.93  $1,978.49  $1,950.29  $1,712.76




  General Partners          $1,918.92  $1,900.90  $1,978.49  $1,943.94  $1,709.95
 Net income (loss)
allocated to:
  Limited Partners            $23,000   $(79,000) $49,000    $405,000   $422,000
  General Partners             $2,000   $( 9,000) $ 4,000    $ 26,000   $160,000
</table>
    See notes to consolidated financial statement




<page>




Item 7.  Management's Discussion and Analysis of Financial Condition and
Results of Operation

Liquidity

     Reference is made to "Item 6.  Selected Financial Data" and "Item 8.
Financial Statements and Supplementary Data."  The information contained
therein is essential to, and should be read in conjunction with the following
analysis.

     Most United States commodity exchanges limit fluctuations in commodity
futures and options contract prices during a single day by regulations referred
to as "daily price fluctuation limits "or" daily limits."  During a single
trading day, no trades may be executed at prices beyond the daily limit.  Once
the price of a futures contract has reached the daily limit for that day,
positions in that contract can neither be taken nor liquidated.

     Commodity futures and options prices have occasionally moved the daily
limit for several consecutive days with little or no trading.  Similar
occurrences could prevent the Partnership from promptly liquidating unfavorable
positions and subject the Partnership to substantial losses which could exceed
the margin initially committed to such trades.  In addition, even if commodity
futures and option prices have not moved the daily limit, the Partnership may
not be able to execute futures trades at favorable prices if little trading in
such contracts is taking place.  Other than these limitations on liquidity,
which are inherent in the Partnership's commodity futures and options trading
operations, the Partnership's assets are highly liquid and are expected to
remain so.

Capital Resources

     The Partnership does not intend to raise any additional capital through
borrowing.  Due to the nature of the Partnership's business, it will make no
significant capital expenditures, and substantially all its assets are and will
be represented by cash, deposits with futures commission merchants and
commodity futures investments.  Inflation is not a direct factor in the
Partnership's profitability although it can influence the attitudes of current
investors or potential investors.

Market and Credit Risk

     The Partnership engages in the speculative trading of U.S. and foreign
futures contracts, option on U.S. and foreign future contracts, and forward and
nonfinancial contracts held as part of a diversified trading strategy. The
Partnership is exposed to both market risk, the risk arising from changes in
the market value of the contracts; and credit risk, the risk of failure by
another party to perform according to the terms of a contract.

     For derivatives, risks arise from changes in the market value of the
contracts. Theoretically, the Partnership is exposed to a market risk equal to
the value of futures and forward contracts purchased an unlimited liability on
such contracts sold short. As both a buyer and seller of options, the
Partnership pays or receives a premium at the outset and then bears the risk of
unfavorable changes in the price of the contract underlying the option. Written
options expose the Partnership to potentially unlimited liability; for
purchased options, the risk of loss is limited to the premiums paid.





     It is believed that credit risk is minimal as no borrowing has been
conducted in the name of the Partnership.   The portion of  Partnership assets
held in zero coupon bonds (75%-80%) is subject to interest rate fluctuations,
but regarded as a relatively low-risk investment.  Between twenty and twenty-
five percent of assets are used for speculative purposes on exchange traded
futures contracts.  The commodity trading advisor engaged by the partnership
typically utilizes between 15% to 20% leverage as part of risk management in
it's trading strategy.

     The General Partner has established procedures to actively monitor and
minimize market and credit risks.  The General Partner reviews the trading
advisor's market activity on a daily basis and is appraised of general futures
market activity on an ongoing basis. The Limited Partners bear the risk of loss
only to the extent of the market value of their respective investments and, in
certain specific circumstances, distributions and redemptions received.

Results of Operations

     Trading operations posted a gain of $55,000 for the year ended June 30,
2001 as compared to a net loss of ($42,000) in 2000 and a net gain of $127,000
in 1999.  The majority of profits were made in long positions in stock market
indexes as well as long-term bond instruments, both foreign and domestic.

     The guaranteed yield pool experienced an unrealized gain of  $19,000 in
fiscal 2001, compared to a $59,000 unrealized gain in 2000 and an unrealized
loss of ($3,000) in 1999.  Notes were sold in October 2000 and March 2001
resulting in a realized gain of $5,000 for fiscal year 2001.

     Fund units are redeemed on a quarterly basis.  During the fiscal year
ending June 30, 2001, 213 units with a total value of $413,000 were redeemed.
 During fiscal year 2000 redeemed units equaled 209 with a value of $401,000.
There were 290 units redeemed in 1999 for a total of $585,000.

Item 8.  Financial Statements and Supplementary Data

     Financial statements meeting the requirements of Regulation S-X are listed
on page F-1 of this report.

     The supplementary financial information, specified by Item 302 of
Regulation S-K, is not applicable.

Item 9.  Disagreements on Accounting and Financial Disclosure

     None.


     PART III

Item 10.  Directors and Executive Officers of the Registrant

     The Partnership has no directors or executive officers.  The Partnership
is managed by its General Partner.  The Trading Manager makes trading decisions
for the Partnership.  The General Partner is Rosenthal Collins Futures
Management, Inc., which is owned by Rosenthal Collins Group, L.P.  The address
of the General Partner is 216 W. Jackson Blvd.  Suite 300, Chicago, Illinois
60606.

Item 11.  Executive Compensation





     The Partnership has no directors or  officers.  The Fund is managed by the
General Partner as described in "Item 1.  Business" herein.

     During the past year, RXR acted as the Partnership's sole Trading Manager,
pursuant to the Management Contracts described in "Item 1.  Business."  For the
years ended June 30, 2001 and 2000, RXR was paid $16,000 and $20,000 in
consulting fees, respectively.  For the years ended June 30, 2001 and 2000,
Rosenthal Collins Futures Management, Inc. has been paid $35,000 and $50,000,
respectively, in brokerage fees, and Rosenthal Collins Group has been paid
$30,000 and $36,000, respectively, in brokerage clearing commission.

Item 12.  Security Ownership of Certain Beneficial Owners and Management

     (a) Security Ownership of Certain Beneficial Owners

     The Trading Manager, RXR, owns no  units in the Partnership.  On June  30,
2001, Rosenthal Collins  Futures Management, Inc.,  the General Partner,  owned
15.4% of the Fund.

     (b)  Security Ownership of Management

     Under the terms  of the Limited  Partnership agreement, the  Partnership's
affairs are  managed  by  the  General  Partner and  the  Trading  Manager  has
discretionary authority over  the Partnership's commodity  investments.  As  of
June 30,  2001, the  General Partner's interest  in the  Partnership was  worth
$213,000.

     (c) Changes in Control

     The Fund's General Partner is Rosenthal Collins Futures Management,  Inc.,
a Delaware corporation.  The  General Partner was a wholly-owned subsidiary  of
Rosenthal Collins  Group, L.P.,  an Illinois  Limited  Partnership.   Rosenthal
Collins Group, L.P. is a  registered Futures Commission Merchant and serves  as
the clearing broker for The Balanced Opportunity Fund, L.P.

     J. Robert Collins is a General  Partner of Rosenthal Collins Group and  is
the President  of  Rosenthal  Collins  Futures Management,  Inc.,  the  General
Partner of the Balanced Opportunity Fund, L.P.


Item 13.  Certain Relationships and Related Transactions


     Refer to Item 12, section (c)

     The General  Partner, Rosenthal  Collins Futures  Management,  Inc., is  a
Corporation wholly owned by Rosenthal Collins Group.

     All charges  are  described in  Item  1. Business,  and amounts  paid  are
described in Item 11. Executive Compensation.

     PART IV

Item 14.  Exhibits, Financial Statement Schedules and Reports on Form 8-K

     (a)  (1)  Financial Statements





          See Index to Financial Statements on page F-1.

     (a)  (2)  Financial Statements Schedules

           Schedules are omitted for the  reason that they are not required  or
are not  applicable or  that equivalent information  has been  included in  the
financial statements or the notes thereto.

     (a)  (3)  Exhibits

           (3)  Articles of Incorporation and By-laws

          a.   Limited Partnership  Agreement (attached  to  the Prospectus  as
Exhibit B)

          b.  Subscription Requirements (attached to the Prospectus as  Exhibit
B)

          c.  Power of Attorney (attached to the Prospectus as Exhibit B)

          d.  Request for Redemption (attached to the Prospectus as Exhibit D)

     (b)  Reports on Form 8-K



<page>






                               INDEX OF EXHIBITS

              (The following exhibits have been previously filed)

Exhibit             Description
Number

3.1    Limited Partnership Agreement (attached to the Prospectus as Exhibit
       A).

3.2    Subscription Requirements (attached to the Prospectus as Exhibit B).


3.3    Power of Attorney (attached to the Prospectus as Exhibit C).

3.4    Request for Redemption (attached to the Prospectus as Exhibit D).

10.01  Customer Agreement between Registrant and Rosenthal Collins Group

10.02  Advisory contract between Registrant and RXR









<page>






SIGNATURES

     Pursuant to the requirements of Section 13 or 15 (d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized, in the City of
Chicago and State of Illinois on the ________ day of _______________, 2001.


THE BALANCED OPPORTUNITY FUND, L.P.               STATE OF ILLINOIS
                                                    COUNTY OF COOK
By ROSENTHAL COLLINS FUTURES MANAGEMENT, INC.


                                        SUBSCRIBED and SWORN to before me
                                         this _____ day of _________ 2001


________________________________
           By J. Robert Collins
           President




     Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the General

Partner of the Registrant in the capacities and on the date indicated.


By ROSENTHAL COLLINS FUTURES MANAGEMENT, INC.          STATE OF ILLINOIS
 General Partner of the Registrant                     COUNTY OF COOK

                                        SUBSCRIBED and SWORN to before me
                                          this ____ day of ___________2001


______________________________
       By J. Robert Collins
         President




<page>



(the above signatories being the principal executive officer of Rosenthal
Collins Futures Management, Inc.)





                      The Balanced Opportunity Fund, L.P.
                       (An Illinois Limited Partnership)

                         INDEX TO FINANCIAL STATEMENTS






                                                                      Pages

Independent Auditor's Report                                            F-2

Financial Statements:
     Consolidated statements of financial condition,                    F-3
       June 30, 2001 and 2000

     Consolidated statements of operations for the                      F-4
       years ended June 30, 2001, 2000, and 1999

     Consolidated statements of changes in partners' capital for        F-5
       the years ended June 30, 2001, 2000, and 1999

     Notes to financial statements                                 F-6/F-10



Schedules are omitted because  they are inapplicable or equivalent  information
has been included elsewhere herein.

<page>










                         INDEPENDENT AUDITOR'S REPORT


To the Partners of The Balanced Opportunity
  Fund Limited Partnership
Chicago, Illinois


We have audited the accompanying consolidated statements of financial condition
of The Balanced Opportunity Fund Limited Partnership as of June 30, 2001 and
2000, and the related consolidated statements of operations and changes in
partners' capital for each of the three years in the period ended June 30,
2001.  These consolidated financial statements are the responsibility of the
Partnership's management.  Our responsibility is to express an opinion on these
consolidated financial statements based on our audit.

We conducted our audits in accordance with auditing standards generally
accepted in the United States of America.  Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the
financial statements are free of material misstatement.  An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements.  An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation.  We believe that our
audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the consolidated financial position of The
Balanced Opportunity Fund Limited Partnership as of June 30, 2001 and 2000, and
the results of their operations and changes in partners' capital for each of
the three years in the period ended June 30, 2001, in conformity with
accounting principles generally accepted in the United States of America.

/s/ McGladrey & Pullen, LLP

Chicago, Illinois
July 25, 2001







                                     F - 2
<page>





THE BALANCED OPPORTUNITY FUND
LIMITED PARTNERSHIP

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
June 30, 2001 and 2000

ASSETS                                               2001        2000
                                                  ------------------------
Equity in commodity futures trading accounts:
  Cash                                             $   151,000 $   264,000
  Net unrealized gain on open contracts                     -       30,000
                                                  ------------------------
          Total equity in commodity futures
            trading accounts                           151,000     294,000

Guaranteed yield pool - at market                    1,271,000   1,576,000

Other receivables                                        1,000       1,000
                                                  ------------------------
                                                   $ 1,423,000 $ 1,871,000
                                                  ========================
LIABILITIES AND PARTNERS' CAPITAL

Liabilities
  Accrued administrative expenses                  $    18,000 $    21,000
  Accrued brokerage commissions and fees                 3,000       5,000
  Accrued management fees                                1,000       1,000
  Net unrealized loss on open contracts                 12,000          -
  Redemptions payable                                    4,000      71,000
                                                  ------------------------
          Total liabilities                             38,000      98,000
                                                  ------------------------
Partners' Capital
  Limited partners (units outstanding:
    2001 - 610; 2000 - 823)                          1,172,000   1,562,000
  General partner (units outstanding:
    2001 and 2000 - 111)                               213,000     211,000
                                                  ------------------------
                                                     1,385,000   1,773,000
                                                  ------------------------
                                                   $ 1,423,000 $ 1,871,000
                                                  ========================

The accompanying notes are an integral part of these
consolidated financial statements.
                                     F - 3
<page>





THE BALANCED OPPORTUNITY FUND
LIMITED PARTNERSHIP

CONSOLIDATED STATEMENTS OF OPERATIONS
Years Ended June 30, 2001, 2000 and 1999

                                             2001       2000       1999
                                          ---------- ---------- ----------
Income:
  Trading gain (loss):
    Realized                               $ 101,000  $(60,000)  $ 118,000
    Changes in unrealized                   (41,000)     21,000      8,000
  Foreign currency gain (loss)               (5,000)    (3,000)      1,000
                                          ---------- ---------- ----------
          Gain (loss) from trading            55,000   (42,000)    127,000
                                          ---------- ---------- ----------
Guaranteed yield pool:
  Interest income                             89,000     34,000     73,000
  Unrealized market value gain (loss)         19,000     59,000    (3,000)
  Realized gain                                5,000     11,000     54,000
                                          ---------- ---------- ----------
          Guaranteed yield pool revenue      113,000    104,000    124,000
                                          ---------- ---------- ----------
Interest income                               10,000     17,000     23,000
                                          ---------- ---------- ----------
          Total income                       178,000     79,000    274,000
                                          ---------- ---------- ----------
Expenses:
  Brokerage commissions and fees              65,000     86,000    115,000
  Consulting fees                             16,000     20,000     28,000
  Administrative expenses                     72,000     61,000     78,000
                                          ---------- ---------- ----------
                                             153,000    167,000    221,000
                                          ---------- ---------- ----------
          Net income (loss)                $  25,000  $(88,000)  $  53,000
                                          ========== ========== ==========
Net income (loss) allocated to:
  Limited Partners                         $  23,000  $(79,000)  $  49,000
                                          ========== ========== ==========
  General Partner                          $   2,000  $ (9,000)  $   4,000
                                          ========== ========== ==========
Net income (loss) per Limited Partner
  unit outstanding throughout each period  $      23  $    (96)  $      28
                                          ========== ========== ==========
Net income (loss) per General Partner
  unit outstanding throughout each period  $      20  $    (81)  $      35
                                          ========== ========== ==========
The accompanying notes are an integral part of these
consolidated financial statements.

                                     F - 4





THE BALANCED OPPORTUNITY FUND
LIMITED PARTNERSHIP

CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
Years Ended June 30, 2001, 2000 and 1999


                                  Total
                                Number of   Limited    General
                                  Units     Partners   Partner     Total
                               ---------- ---------- ---------- ----------

Balance, June 30, 1998              1,433 $2,578,000  $ 216,000 $2,794,000

  Redemption of units of Limited
    Partnership interest            (290)  (585,000)         -   (585,000)
  Net income                          -      49,000       4,000    53,000
                               ---------- ---------- ---------- ----------
Balance, June 30, 1999              1,143  2,042,000    220,000  2,262,000

  Redemption of units of Limited
    Partnership interest            (209)  (401,000)         -   (401,000)
  Net (loss)                          -     (79,000)    (9,000)   (88,000)
                               ---------- ---------- ---------- ----------
Balance, June 30, 2000                934  1,562,000    211,000  1,773,000

  Redemption of units of Limited
    Partnership interest            (213)  (413,000)        -    (413,000)
  Net income                           -      23,000      2,000     25,000
                               ---------- ---------- ---------- ----------

Balance, June 30, 2001                721 $1,172,000  $ 213,000 $1,385,000
                               ========== ========== ========== ==========
                                                            June 30,
                                                        2001       2000
                                                     ---------- ----------
Net asset value per unit,
Limited Partner                                       $1,920.84  $1,897.93
                                                     ========== ==========
Net asset value per unit,
General Partner                                       $1,921.11  $1,900.90
                                                     ========== ==========
The accompanying notes are an integral part of these
consolidated financial statements.

                                     F - 5
<page>




THE BALANCED OPPORTUNITY FUND
LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

Note 1.   Organization of the Partnership and Significant Accounting Policies


General Description of the Partnership:  The Balanced Opportunity Fund, Limited
Partnership (The Fund or the Partnership) was organized under the Illinois
Revised Uniform Limited Partnership Act in July 1989 to engage in the
speculative trading of commodity futures, forward contracts, and other
commodity interests.  It is subject to the regulations of the Commodity Futures
Trading Commission (CFTC), an agency of the U.S. Government that regulates most
aspects of the commodity futures industry, the rules of the National Futures
Association (NFA), an industry self-regulatory organization, and the
requirements of commodity exchanges where the Partnership executes
transactions.  Additionally, the Partnership is subject to the requirements of
futures commission merchants (FCMs) through which the Partnership trades.

50,000 units of Limited Partnership interest were available during the initial
offering period.  The Partnership is closed and not presently selling
additional units.

The General Partner and each Limited Partner share in the profits and losses of
the partnership in proportion to their respective interest in the partnership.
 A Limited Partner's loss is limited to the amount of his or her investment.

Approximately 80 percent of the Fund's assets at the commencement of trading
was invested in zero coupon United States Government Treasury Securities
(Stripped Notes) so as to yield (i) $1,000 per unit, plus (ii) a five percent
compound annual yield approximately six and one-half years after the
commencement of trading (the Guaranteed Yield Pool).  Due to the interest rate
sensitivity of the market value of the Stripped Notes, persons who redeem prior
to the dissolution date have no such assured return.  The Guaranteed Yield Pool
note matured in February 1997 and in accordance with the Fund's limited
partnership agreement, a special redemption at the Fund's net asset market
value was offered to investors on February 28, 1997.  A new Stripped Note was
purchased after the special redemption offer expired.  As of June 30, 2001 and
2000, the maturity value of the Stripped Notes amounted to $1,350,000 and
$1,800,000, respectively.  The Stripped Note held as of June 30, 2001, had a
maturity date of November 15, 2002.  The remainder of the Fund's assets were
invested in the Trading Company in which the Fund is the sole limited partner
and possessor of substantially all the beneficial interest.



                                     F - 6
<page>




Note 1.   Organization of the Partnership and Significant Accounting Policies
(continued)

The two-tier structure of the Fund and the Trading Company insulates the
Guaranteed Yield Pool against any liability for losses which might be incurred
by the Trading Company.  Consequently, the Fund controls all of the substantive
activities of the Trading Company and, as such, has consolidated its results
for financial reporting purposes.

The Fund has elected not to provide statements of cash flows as permitted by
Statement of Financial Accounting Standards No. 102, Statements of Cash Flows -
Exemption of Certain Enterprises and Classification of Cash Flows from Certain
Securities Acquired for Resale.

Significant accounting policies are as follows:

Principles of consolidation:  All material intercompany accounts and
transactions are eliminated in consolidation.  The consolidated financial
statements include the Trading Company and the Guaranteed Yield Pool
(collectively, the Fund or the Partnership).

Accounting estimates:  The preparation of financial statements requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and reported amounts of revenues and
expenses during the reporting period.  Actual results could differ from those
estimates.

Revenue recognition:  Futures contracts are recorded on trade date and gains or
losses are realized when contracts are liquidated.  Unrealized gains or losses
on open contracts (the difference between contract purchase price and market
price) at the date of the statement of financial condition are included in
equity in commodity trading accounts.  Any change in net unrealized gain or
loss from the preceding period is reported in the statement of operations.
Market value of futures contracts is based upon exchange settlement prices.

Foreign exchange gains and losses:  The Partnership trades in foreign
denominated contracts.  Realized foreign currency gains result from closed
foreign currency contracts and other foreign currency denominated contracts.
The Partnership does not separately report the effect of changes in foreign
currency rates from changes in other market prices on open contracts.  Such
changes are included in net unrealized trading profit.

Transaction fees and costs:  Transaction fees and costs are accrued at
approximately $50 per contract on a round-turn basis adjusted to equal 4
percent of the average annual net assets of the Partnership.  Also, the
Partnership incurs ongoing legal, accounting, and administrative costs.

                                     F - 7
<page>





Note 1.   Organization of Partnership and Significant Accounting Policies
(continued)

Income taxes:  No provision for federal income taxes has been made in these
financial statements as each partner is individually responsible for reporting
income or loss based on their respective share of the Partnership's income and
expenses as reported for income tax purposes.  The Partnership is required to
pay an Illinois replacement tax of 1.5% of net income related to those limited
partners who are not otherwise subject to the tax.

Dissolution of Partnership:  The Partnership will terminate on December 31,
2009.

Right of setoff of certain amounts:  Pursuant to the Trading Company's
agreement with its FCM, all balances placed on deposit with such broker,
whether used for trading purposes or not, are available to be used for margin
purposes on any exchange and for any contract in which the Trading Company
trades.  The Trading Company has similar agreements with a financial
institution for its over-the-counter contracts.  As a result, the consolidated
financial statements only present the net asset or liability relating to such
trading activities.

Note 2.   General Partner

The Fund's General Partner is Rosenthal Collins Futures Management, Inc., a
Delaware corporation. The General Partner is a wholly owned subsidiary of
Rosenthal Collins Group, L.P., an Illinois Limited Partnership. Rosenthal
Collins Group, L.P. is a registered Futures Commission Merchant and serves as
the clearing broker for The Balanced Opportunity Fund, L.P. The General Partner
conducts and manages the business of the Partnership and was required by the
Limited Partnership Agreement to make an initial investment in the Partnership
equal to the lesser of $100,000 or 3% of the total contributions to the
Partnership, but in no event less than 1% of such contributions.

Note 3.   Related Party Transactions

The Partnership pays Rosenthal Collins Group, L.P. 0.333 of 1% (a 4% annual
rate) of the Partnership's month-end assets for brokerage and other services.
Furthermore, the Partnership pays all "give-up" fees, as defined.  For the
years ended June 30, 2001, 2000 and 1999, brokerage commission expenses totaled
$65,000, $86,000 and $115,000, respectively.  As of June 30, 2001 and 2000,
brokerage commissions payable to the General Partner were $3,000 and $5,000,
respectively.  See also Note 4 for transactions with the trading manager.


                                     F _ 8
<page>




Note 4.   Trading Manager

RXR serves as the trading manager for the assets of the Trading Company.
Compensation to RXR for their services is as follows:

Consulting fee:  The Trading Company pays a consulting fee at a one percent
annual rate based upon the average month-end net assets of the Partnership
before reduction for any brokerage commissions or other charges as of such
month-end.  Management fee expense was $16,000, $20,000 and $28,000 for the
years ended June 30, 2001, 2000 and 1999, respectively.  As of June 30, 2001
and 2000, accrued management fees were $1,000 for each year.

Incentive fee:  The Trading Company pays an incentive fee to RXR equal to 15
percent of any new trading profit (which includes interest income) achieved by
the Trading Company in each calendar quarter.  Such incentive fee is accrued in
each month in which "New Appreciation" occurs.  In those months in which New
Appreciation is negative, previous accruals, if any, during the incentive
period will be reduced.  In those instances in which a limited partner redeems
an investment, the incentive fee is to be paid to RXR through the calendar year
quarter.  No incentive fees have been paid during the three years ended June
30, 2001, 2000 and 1999.

Note 5.   Distributions and Redemptions

A Limited Partner may request and receive redemption of units owned as of any
calendar quarter-end upon ten days' written notice to the General Partner.

The General Partner does not presently intend to make regular distributions of
either profits or capital to Limited Partners, although it may, if doing so,
not reduce the Partnership's asset base to a level which would impair the
Partnership's objective.  In the event that the Partnership recognizes
substantial profits, the General Partner may reconsider, but there can be no
assurance whatsoever that any distributions will be made.  Accordingly, the
Limited Partners may incur current income tax liabilities in excess of any
distributions received by them from the Partnership.

Note 6.   Deposits With Brokers

The Partnership deposits cash and U.S. Government securities with FCMs subject
to CFTC regulations and various exchange and broker requirements.  Margin
requirements are satisfied by the deposit of cash and securities with such
FCMs. The Partnership earns interest income on its cash deposited with the
FCMs.




                                     F _ 9

<page>




Note 7.   Trading Activities and Related Risks

The Partnership engages in the speculative trading of U.S. and foreign futures
contracts, options on U.S. and foreign futures contracts, and forward contracts
(collectively, derivatives).  Trading gains (losses) from derivatives for the
years ended June 30, 2001, 2000 and 1999, are reflected in the statements of
operations.  Such trading results reflect the net gain (loss) arising from the
Partnership's speculative trading of futures contracts, options on futures
contracts, and forward contracts.  These derivatives include both financial and
nonfinancial contracts held as part of a diversified trading strategy.  The
Partnership is exposed to both market risk, the risk arising from changes in
the market value of the contracts; and credit risk, the risk of failure by
another party to perform according to the terms of a contract.

The purchase and sale of futures and options on futures contracts requires
margin deposits with FCMs.  Additional deposits may be necessary for any loss
on contract value.  The Commodity Exchange Act (CEAct) requires an FCM to
segregate all customer transactions and assets from the FCM's proprietary
activities.  A customer's cash and other property (for example, U.S. Treasury
bills) deposited with an FCM are considered commingled with all other customer
funds subject to the FCM's segregation requirements.  In the event of an FCM's
insolvency, recovery may be limited to a pro rata share of segregated funds
available.  It is possible that the recovered amount could be less than the
total of cash and other property deposited.

Note 7.   Trading Activities and Related Risks (continued)

For derivatives, risks arise from changes in the market value of the contracts.
 Theoretically, the Partnership is exposed to a market risk equal to the value
of futures and forward contracts purchased and unlimited liability on such
contracts sold short.  As both a buyer and seller of options, the Partnership
pays or receives a premium at the outset and then bears the risk of unfavorable
changes in the price of the contract underlying the option.  Written options
expose the Partnership to potentially unlimited liability; for purchased
options the risk of loss is limited to the premiums paid.

The General Partner has established procedures to actively monitor and minimize
market and credit risks.  The Limited Partners bear the risk of loss only to
the extent of the market value of their respective investments and, in certain
specific circumstances, distributions and redemptions received.

Note 8.   Fair Value of Financial Instruments

The Partnership believes that the carrying value of its financial instruments
is a reasonable estimate of fair value.  Equity in commodity futures trading
accounts and the United States Treasury securities are recorded at market using
market quotations from the Partnership's FCM.  The fair value of all other
financial instruments reflected in the statement of financial condition
(primarily receivable from commodity broker and accrued expenses) approximate
the recorded value due to their short-term nature.  The General Partner reviews
the trading advisor's market activity on a daily basis and is appraised of
general futures market activity on an ongoing basis.
                                     F - 10